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Early Horror Stories of the Data Economy

By
Jeff Pollard, Principal Analyst, Forrester
on May 07, 2018

When salacious tales of Cambridge Analytica's activities emerged in 2018, we thought the company was finished. The many on-air discussions of illegal activities, law enforcement warrants, legal action threats from partners, and questionable ethics appeared to doom it. We then saw multiple suspensions and resignations, and on May 2, Cambridge Analytica announced it would file for bankruptcy. For a brief moment, it seemed like the world was a better place: The “good team” had won, the evildoers were vanquished, and the world was moving on.

Of course, this wasn’t actually the case. Instead . . .

21st-Century Monsters are Filing Paperwork as Corporations

The victory celebration was short-lived. On the heels of the bankruptcy news, we learned that Emerdata — a company founded in 2017 — was using the same address as Cambridge Analytica’s parent company, SCL Group. So in continuing proof that we might be living in the darkest timeline possible, Emerdata is listing the chairman of Frontier Services Group as one of its directors, and his lineage dates back to Blackwater. Is this a nod to the rebranding efforts of the infamous private security firm? Does Emerdata want you to forget about its evil past? Most definitely, yes. Not only is Cambridge Analytica rising from the dead like a zombie, it’s rising with enhanced predator capabilities like a vampire — a vampire with legal paperwork and tax documentation prepared and filed, that is.

We’re Witnessing The Danger Of The Scary Data Life Cycle

When you collect data and then build platforms and business models that monetize that data, you risk losing control of the data. Companies might use that information for good, perhaps making medical advances, and other companies might use it for evil. To make this as clear as possible, no matter how much evil Cambridge Analytica did with the data it obtained from Facebook, Facebook is in way more trouble. We outline the dangers of the scary data life cycle in our The Future Of Cybersecurity And Privacy: Defeat The Data Economy’s Demons Forrester report.

If you’re actively monetizing information, you could be the next Facebook. Your digital supply chain is now loaded with ethical and moral dilemmas that you will need to confront sooner rather than later. Cambridge Analytica is simply rebranding and emerging as something “different.” In fact, the asymmetry between the firms is striking. Facebook can’t simply rebrand or change in a few days, yet the company that helped to make the social media giant Public Enemy No. 1 in 2018 has pulled a disappearing act while eyes were focused in the other direction. Is it worth becoming the next data distributor only to be crushed by your third party’s ethics?

Cambridge Analytica — AKA Emerdata/SCL Group — has already proven its willingness to engage in destabilizing behavior aimed at governments. It turns out that weaponizing data is indeed an effective way to influence elections on a global basis. (Are you scared yet?) Now, in a government-esque move, Emerdata has coupled its background of destabilizing data analytics with paramilitary expertise. Regardless of political affiliation or viewpoint, this should concern governments and enterprises as one of the more terrifying geopolitical threats.

Weaponized Data Will Target Your Brand

While the group of clients that Cambridge Analytica represents featured politicians and political movements, enterprises should worry about what will happen when influence campaigns take aim at their brand and reputation. It will be more than a PR and advertising battle. Disinformation, misinformation, and feedback loops designed to elicit the most emotional responses possible will seek to degrade — or distort — the customer experiences and customer engagements that your business has created.

The original Forrester Blog is here. The views and opinions expressed in this article are those of the author and do not necessarily reflect those of CDOTrends.